In a statement, ICTSI said the decision to shut down the facility was arrived at since its operations have been in the red starting in 1998.
The ICD was formerly run by an ICTSI subsidiary, ICX Corp., which was merged last year with ICTSI and made a division of the Manila International Container Terminal (MICT) in an effort to minimize overhead costs.
"Despite the merger, however, operations continue to incur losses, compelling ICTSI to permanently shut down operations of the country’s only rail-serviced ICD and alternative land access to the Port of Manila," ICTSI said.
ICTSI attributed ICD’s losses to several factors foremost of which was the poor pace of industrial growth in the company’s main market, the Calabarzon area, as investments and trade volume slowed during the past four years.
Moreover, ICTSI said the poorly maintained rail tracks and railroad bridges have forced the locomotive to slow down for safety, preventing the fielding of more trips and consequently, raising the cost of every locomotive trip.
In addition, the train service was unable to compete price-wise with truck hauling services whose rates have fallen, also as a result of the low demand for this service.
ICTSI said the assets, including the locomotive and rail cars will be decommissioned and later auctioned off, although the company will continue to maintain the 20-hectare property for other future purposes. – Conrado Diaz Jr.